NEW YORK CHANGES IN BUSINESS AUTO, BUSINESS AUTO PHYSICAL DAMAGE, MOTOR CARRIER AND TRUCKERS COVERAGE FORMS

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1 COMMERCIAL AUTO CA THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. NEW YORK CHANGES IN BUSINESS AUTO, BUSINESS AUTO PHYSICAL DAMAGE, MOTOR CARRIER AND TRUCKERS COVERAGE FORMS For a covered "auto" licensed or principally garaged in New York, this endorsement modifies insurance provided under the BUSINESS AUTO COVERAGE FORM BUSINESS AUTO PHYSICAL DAMAGE COVERAGE FORM MOTOR CARRIER COVERAGE FORM TRUCKERS COVERAGE FORM With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement. A. Changes In Liability Coverage 1. Who Is An Insured does not include anyone loading or unloading a covered "auto" except you, your "employees", a lessee or borrower or any of their "employees". 2. The following is added to Supplementary Payments: (7) We will pay all expenses incurred by an "insured" for first aid to others at the time of an "accident". (8) The cost of appeal bonds. 3. Paragraph b. Out Of State Coverage Extensions in the Business Auto, Motor Carrier and Truckers Coverage Forms is replaced by the While a covered "auto" is used or operated in any other state or Canadian province we will provide at least the minimum amount and kind of coverage which is required in such cases under the laws of such jurisdiction. 4. Exclusions is changed as follows: a. The Employee Indemnification And Employer's Liability Exclusion is replaced by the This insurance does not apply to: "Bodily injury" to an "employee" of the "insured" arising out of and in the course of: (1) Employment by the "insured"; or (2) Performing the duties related to the conduct of the "insured's" business. But this exclusion does not apply to "bodily injury" to domestic "employees" not entitled to workers' compensation benefits or to liability assumed by the "insured" under an "insured contract". For the purposes of the Coverage Form, a domestic "employee" is a person engaged in household or domestic work performed principally in connection with a residence premises. b. The Fellow Employee Exclusion is amended by the addition of the However, this exclusion only applies if the fellow "employee" is entitled to benefits under any of the workers' compensation, unemployment compensation or disability benefits law, or any similar law. c. The Handling Of Property Exclusion does not apply. d. The Movement Of Property By Mechanical Device Exclusion does not apply. e. The Operations Exclusion does not apply. f. The Completed Operations Exclusion does not apply. g. The Pollution Exclusion does not apply. CA Insurance Services Office, Inc., 2008 Page 1 of 7

2 h. The War Exclusion is replaced by the "Bodily injury" or "property damage" caused by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incident to any of the foregoing. i. The Racing Exclusion does not apply. j. The following Exclusion is added: SPOUSAL LIABILITY "Bodily injury" to or "property damage" of the spouse of an "insured". However, we will pay all sums an "insured" legally must pay if named as a third party defendant in a legal action commenced by his or her spouse against another party. 5. If the limit of insurance shown in the Declarations is equal to or greater than $160,000, the Limit Of Insurance Provision is changed by the Limit Of Insurance applies except that we will apply the limit of insurance shown in the Declarations to first provide the separate limits required by the New York Motor Vehicle Safety Responsibility Act for: a. "Bodily injury" not resulting in death of any one person caused by any one "accident"; b. "Bodily injury" not resulting in death of two or more persons caused by any one "accident"; c. "Bodily injury" resulting in death of any one person caused by any one "accident"; d. "Bodily injury" resulting in death of two or more persons caused by any one "accident"; e. "Property damage" in any one "accident". This provision will not change our total limit of insurance. 6. If the limit of insurance shown in the Declarations is less than $160,000, the Limit Of Insurance Provision is replaced by the Regardless of the number of covered "autos", "insureds", premiums paid, claims made or vehicles involved in the "accident", the most we will pay for the total of all damages and "covered pollution cost or expense" combined, resulting from any one "accident" is the Limit Of Insurance for Liability Coverage shown in the Declarations, except for those damages for "bodily injury" resulting in death. We will apply the limit of insurance shown in the Declarations to first provide the separate limits required by the New York Motor Vehicle Safety Responsibility Act as follows: a. "Bodily injury" not resulting in death of any one person caused by any one "accident"; b. "Bodily injury" not resulting in death of two or more persons caused by any one "accident"; c. "Property damage" in any one "accident". This provision will not change our total limit of insurance. All "bodily injury" and "property damage" resulting from continuous or repeated exposure to substantially the same conditions will be considered as resulting from one "accident". In addition, our limit of insurance for "bodily injury" resulting in death is as follows: a. Up to $50,000 for "bodily injury" resulting in death of any one person caused by any one "accident"; and b. Up to $100,000 for "bodily injury" resulting in death of two or more persons caused by any one "accident", subject to a $50,000 maximum for any one person. Page 2 of 7 Insurance Services Office, Inc., 2008 CA

3 If the limit of insurance shown in the Declarations is not exhausted by payment of damages for: a. "Bodily injury" not resulting in death; b. "Property damage"; or c. "Covered pollution cost or expense", any remaining amounts will be used to pay damages for "bodily injury" resulting in death, to the extent the limit of insurance shown in the Declarations is not increased. 7. If forming part of the policy, the Nuclear Energy Liability Exclusion (Broad Form) Endorsement does not apply to the Commercial Auto Coverage Part. B. Changes In Physical Damage Coverage 1. The War Or Military Action Exclusion is replaced by the War, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incident to any of the foregoing. 2. Deductible is replaced by the For each covered "auto", our obligation to pay for, return or replace damaged or stolen property will be reduced by the applicable deductible shown in the Declarations. 3. The following are added to Physical Damage Coverage: The following provisions apply in place of any conflicting policy provisions: a. Mandatory Inspection For Physical Damage Coverage (1) We have the right to inspect any private passenger "auto", including a nonowned "auto", insured or intended to be insured under this Coverage Part before physical damage coverage shall be effective, except to the extent that this right is prescribed and limited by New York State Insurance Department Regulation No. 79 (11 NYCRR 67). (2) During the term of the Coverage Part, coverage for an additional or replacement private passenger "auto" shall not become effective until you notify us and request coverage for the "auto". However, if you replace a private passenger "auto" insured with us for at least 12 months before the replacement date, we will provide the same coverage which applied to the replaced "auto" for 3 days beginning on the date you acquire the replacement "auto". We will also provide an additional day of coverage for each Saturday, Sunday or legal holiday falling within the 3 days. After 3 days, coverage will not apply until you notify us and request coverage for the "auto". (3) When an inspection is required by us, you must cooperate and make the "auto" available for the inspection. b. "Auto" Repairs Under Physical Damage Coverage Payment of a physical damage "loss" shall not be conditioned upon the repair of the "auto". We may not require that repairs be made by a particular repair shop or concern. However, we shall be entitled to the (1) A completed "Certification of Automobile Repairs" as prescribed by the New York State Insurance Department; (2) If the "auto" is repaired, an itemized repair invoice prepared by the "auto" repairer; and (3) An inspection of the "auto", whether or not the "auto" is repaired. c. Recovery Of Stolen Or Abandoned "Autos" If a private passenger "auto" insured under this Coverage Part for physical damage coverage is stolen or abandoned, we or our authorized representative shall, when notified of the location of the "auto", have the right to take custody of the "auto" for safekeeping. CA Insurance Services Office, Inc., 2008 Page 3 of 7

4 C. Changes In Conditions 1. Paragraphs a. and b.2. of the Duties In The Event Of Accident, Claim, Suit Or Loss Condition in the Business Auto, Motor Carrier and Truckers Coverage Forms are replaced by the We have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us: a. In the event of "accident", claim, "suit" or "loss", you or someone on your behalf must give us or our authorized representative notice as soon as reasonably possible of the "accident" or "loss". Include: (1) How, when and where the "accident" or "loss" occurred; (2) The "insured's" name and address; and (3) To the extent possible, the names and addresses of any injured persons and witnesses. Written notice by or on behalf of the injured person or any other claimant to our authorized representative shall be deemed notice to us. b. Additionally, you and any other involved "insured" must: (2) Send us copies of any request, demand, order, notice, summons or legal paper received concerning the claim or "suit" as soon as reasonably possible. 2. Paragraph a. of the Duties In The Event Of Loss Condition in the Business Auto Physical Damage Coverage Form is replaced by the We have no duty to provide coverage under this policy if the failure to comply with the following duties is prejudicial to us: a. In the event of "loss", you must give us notice as soon as reasonably possible of the "loss". Include: (1) How, when and where the "loss" occurred; (2) To the extent possible, the names and addresses of any injured persons and witnesses. 3. The Legal Action Against Us Condition in the Business Auto, Truckers and Motor Carrier Coverage Forms is replaced by the a. Except as provided in Paragraph b., no one may bring a legal action against us until: (1) There has been full compliance with all of the terms of the Coverage Form; and (2) Under Liability Coverage, we, by written agreement with the "insured" and the claimant, agree that the "insured" has an obligation to pay or until the amount of that obligation has finally been determined by judgment after trial. No person or organization has any right under this policy to bring us into any action to determine the "insured's" liability. b. With respect to "bodily injury" claims, if we deny coverage or do not admit liability because an "insured" or the injured person, someone acting for the injured person or other claimant fails to give us written notice as soon as practicable, then the injured person, someone acting for the injured person or other claimant may bring an action against us, provided the sole question is whether the denial of coverage or non admission of liability is based on the failure to provide timely notice. However, the injured person, someone acting for the injured person or other claimant may not bring an action if within 60 days after we deny coverage or do not admit liability, we or an "insured": (1) Brings an action to declare the rights of the parties under the policy; and (2) Names the injured person, someone acting for the injured person or other claimant as a party to the action. 4. The following provision is added and supersedes any provision to the contrary: Failure to give notice to us as soon as practicable, as required under this Coverage Part, shall not invalidate any claim made by the "insured", injured person or any other claimant, unless the failure to provide such timely notice has prejudiced us. However, no claim made by the "insured", injured person or other claimant will be invalidated if it shall be shown not to have been reasonably possible to give such timely notice and that notice was given as soon as was reasonably possible thereafter. Page 4 of 7 Insurance Services Office, Inc., 2008 CA

5 5. The Loss Payment Condition is replaced by the At our option we may: a. Pay for or replace damaged or stolen property; or b. Return the stolen or damaged property, at our expense. We will pay for any damage that results to the "auto" from the "loss". If we pay for the "loss", our payment will include the applicable sales tax for the damaged or stolen property. 6. The Two Or More Coverage Forms Or Policies Issued By Us Condition in the Business Auto, Motor Carrier and Truckers Coverage Forms is changed as follows: This condition does not apply to liability coverage. 7. The Premium Audit Condition is amended by the addition of the An audit to determine the final premium due or to be refunded will be completed within 180 days after the expiration date of the policy or the anniversary date, if this is a continuous policy or a policy written for a term longer than one year. But the audit may be waived if: a. The total annual premium attributable to the auditable exposure base is not reasonably expected to exceed $1,500; or b. The policy requires notification to the insurer with specific identification of any additional exposure units (e.g., autos) for which coverage is requested. c. Except as provided in Paragraphs a. and b. above, the Examination Of Your Books And Records Common Policy Condition continues to apply. D. Changes In Definitions The Definitions Section in the Business Auto, Business Auto Physical Damage, Motor Carrier and Truckers Coverage Forms is changed as follows: 1. The "covered pollution cost or expense" definition in all coverage forms, except the Business Auto Physical Damage Coverage Form, is replaced by the "Covered pollution cost or expense" means any cost or expense arising out of: a. Any request, demand, order or statutory or regulatory requirement; or b. Any claim or "suit" by or on behalf of a governmental authority demanding that the "insured" or others test for, monitor, clean up, remove, contain, treat, detoxify or neutralize, or in any way respond to, or assess the effects of "pollutants". 2. The "insured contract" definition in all coverage forms, except the Business Auto Physical Damage Coverage Form is replaced by the "Insured contract" means: a. A lease of premises; b. A sidetrack agreement; c. An easement or license agreement in connection with vehicle or pedestrian private railroad crossings at grade; d. Any other easement agreement, except in connection with construction or demolition operations on or within 50 feet of a railroad; e. An indemnification of a municipality as required by ordinance, except in connection with work for a municipality; f. That part of any contract or agreement entered into, as part of your business, by you or any of your employees, pertaining to the rental or lease of any "auto"; or g. That part of any other contract or agreement pertaining to your business under which you assume the tort liability of another to pay damages because of "bodily injury" or "property damage" to a third person or organization, if the contract or agreement is made prior to the "bodily injury" or "property damage". Tort liability means a liability that would be imposed by law in the absence of any contract or agreement. An "insured contract" does not include that part of any contract or agreement: a. That pertains to the loan, lease or rental of an "auto" to you or any of your employees, if the "auto" is loaned, leased or rented with a driver; b. That holds a person or organization engaged in the business of transporting property by "auto" for hire harmless for your use of a covered "auto" over a route or territory that person or organization is authorized to serve by public authority; or c. Under which the "insured" assumes liability for injury or damage caused by the dumping, discharge or escape of: (1) Irritants, pollutants or contaminants that are, or that are contained in any property that is: CA Insurance Services Office, Inc., 2008 Page 5 of 7

6 (a) Being moved from the place where such property or pollutants are accepted by the "insured" for movement into or onto the covered "auto"; (b) Being transported or towed by the covered "auto"; (c) Being moved from the covered "auto" to the place where such property or pollutants are finally delivered, disposed of or abandoned by the "insured"; (d) Otherwise in the course of transit; or (e) Being stored, disposed of, treated or processed in or upon the covered "auto" other than fuels, lubricants, fluids, exhaust gases or other similar pollutants that are needed for, or result from, the normal electrical, hydraulic or mechanical functioning of the covered "auto" or its parts. (2) Irritants, pollutants or contaminants not described in Paragraph (1) above unless: (a) The pollutants or any property in which the pollutants are contained are upset, overturned or damaged as a result of the maintenance or use of the covered "auto"; and (b) The discharge, dispersal, release or escape of the pollutants is caused directly by such upset, overturn or damage. 3. The "mobile equipment" definition is replaced by the "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment: a. Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads; b. Vehicles maintained for use solely on or next to premises you own or rent; c. Vehicles that travel on crawler treads; d. Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted: (1) Power cranes, shovels, loaders, diggers or drills; or (2) Road construction or resurfacing equipment such as graders, scrapers or rollers. e. Vehicles not described in Paragraphs a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types: (1) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or (2) Cherry pickers and similar devices used to raise or lower workers. f. Vehicles not described in Paragraphs a., b., c. or d. above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos": (1) Equipment designed primarily for: (a) Snow removal; (b) Road maintenance, but not construction or resurfacing; or (c) Street cleaning. (2) Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and (3) Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting or well servicing equipment. "Mobile equipment" does not include land vehicles that are subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged. Land vehicles subject to a compulsory or financial responsibility law or other motor vehicle insurance law are considered "autos". However, the operation of: a. Equipment described in Paragraphs f.(2) and f.(3) above; or b. Machinery or equipment that is on, attached to, or part of, a land vehicle that would qualify under the definition of "mobile equipment" if it were not subject to a compulsory or financial responsibility law or other motor vehicle insurance law where it is licensed or principally garaged is considered operation of "mobile equipment" and not operation of an "auto". Page 6 of 7 Insurance Services Office, Inc., 2008 CA

7 E. Changes In Forms And Endorsements 1. All references to Underinsured Motorists Coverage shall mean Supplementary Uninsured/Underinsured Motorists Coverage. 2. If the Garagekeepers Coverage endorsement or the Garagekeepers Coverage Customers' Sound Receiving Equipment endorsement is attached, then Exclusion 3. is replaced by the We will not pay for "loss" caused by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incident to any of the foregoing. 3. If the Auto Medical Payments Coverage endorsement is attached, then Exclusion C.6. is replaced by the "Bodily injury" caused by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incident to any of the foregoing. 4. If the Single Interest Automobile Physical Damage Insurance Policy is attached, the War exclusion is replaced by the This insurance does not apply to "loss" caused by war, whether or not declared, civil war, insurrection, rebellion or revolution, or any act or condition incident to any of the foregoing. CA Insurance Services Office, Inc., 2008 Page 7 of 7